Key points from the Autumn Statement 2017

  • Childcare excluded from removal of tax breaks for salary sacrifice schemes – so no change for employer supported childcare vouchers.

  • The Government pledges to keep tax-free childcare under review once it is rolled out in 2017 to ensure it is working for families.  The Chancellor has doubled free entitlement to 30 hours but made no announcement to extend childcare support.  

  • National Living Wage to increase to £7.50 from April 2017.  

  • Tax free personal allowance will be increased to £12,500 and higher rate to £50,000 by end of parliament, and then in line with inflation.

  • The government has no plan to make further welfare savings funding this parliament. Universal credit taper rate to be reduced by 2%, increasing help to claimants.   

  • The adult education budget will be devolved to London.

  • Housing, transport and digital infrastructure investment funds announced.

  • £400m to Wales, £880m to Scotland and £1.8bn English local growth funding - allocations to individual LEPs to be announced shortly .

  • Corporation tax to fall to 17%.

  • Remain committed to up to 100% rural rate relief for small business.

  • Government departmental spending plans will remain in place and grow by inflation - £1bn savings from government efficiency review to be given back to departments to spend in 2020.

  • Finally, the Chancellor abolished the Autumn Statement and Spring Budget.  From 2017 there will be an annual Autumn Budget making changes to tax for the following tax year.  From spring 2018 there will be a Spring Statement replying to the Office of Budget Responsibility’s forecast, but no major fiscal changes.    

 

Members can log in to download our full Autumn Statement briefing here